How to beat the interest rate slump

Interest rates are historically low so you have to be savvy to find the best deals. Money magazine founding editor Pam Walkley investigates.

EVERYBODY NEEDS A bank account, specifically a transaction account. Your salary is paid into it and you pay bills and withdraw cash from it. The catch is most accounts pay zero interest, so it helps to also have a savings account which pays some interest. But with today’s historic low rates, you have to shop around to find a relatively high interest account that suits you. Saving accounts serve two purposes. You can park your money in them, switching funds back to your transaction account only as needed. And you can build savings for whatever purpose you need or as a buffer against harder times. You may be saving to build a home deposit or to start investing within a relatively short two-to-three year period. Retirees usually prefer to keep…

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The Australian Women's Weekly (Digital) - 1 Issue, August 2015

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